Start here if you're new
what it is
Monro sells tires and fixes cars through 1,260 company-owned shops across 32 states.
how it gets paid
Last year Monro made $1.2B in revenue. Tires was the main engine at $0.56B, or 47% of sales.
why growth slowed
Revenue fell 6.4% last year. Latest-quarter revenue was $883 million, up 201% vs. prior year, while EPS fell 26% vs. prior year to $0.26 in the SEC data provided.
what just happened
Monro posted $0.16 EPS versus a $0.13 estimate, but the bigger story is that earnings are still tiny.
At a glance
B balance sheet — gets the job done, barely
30/100 earnings predictability — expect surprises
35.3x trailing p/e — you're paying up for this one
5.8% dividend yield — cash in your pocket every quarter
8.0% return on capital — nothing to write home about
xvary composite: 43/100 — below average
What they do
Monro sells tires and fixes cars through 1,260 company-owned shops across 32 states.
Your car still needs tires and brakes whether the economy is fun or not. Monro has 1,260 company-owned shops, plus 47 franchised locations, which puts the brand close to where you actually break down. That scale helps fill bays and spread labor, rent, and inventory costs across a big footprint.
How they make money
$1.2B
annual revenue · their business grew -6.4% last year
Tires
$0.56B
Maintenance services
$0.34B
Brakes
$0.16B
Shocks and other
$0.14B
The products that matter
retails tires and repairs
Tires and Auto Services
$883M revenue
It is the entire business: $883M of revenue and just a 1.8% net profit margin. You do not have a hidden high-margin segment here.
100% of revenue
Key numbers
35.3x
trailing p/e
P/E → stock price divided by past earnings → so what: you are paying 35.3 times trailing profit for a business with 1.1% operating margin.
1.1%
operating margin
Operating margin → profit after store costs → so what: Monro keeps about 1 cent from every $1 of sales before interest and taxes.
5.8%
dividend yield
Dividend yield → annual cash payout as a percent of the stock price → so what: the income is large, but it also tells you the market doubts the turnaround.
$266M
long-term debt
Long-term debt → money owed beyond one year → so what: the balance sheet has less room for a slow recovery than the share price suggests.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 40 / 100
- long-term debt $266M (32% of capital)
- net profit margin 5.3% — keeps 5 cents of every dollar in revenue
- return on equity 10% — $0.10 profit for every $1 investors have put in
B — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in MNRO 3 years ago → it's now worth $4,860.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Monro posted $0.16 EPS versus a $0.13 estimate, but the bigger story is that earnings are still tiny.
Latest-quarter revenue was $883 million, up 201% vs. prior year, while EPS fell 26% vs. prior year to $0.26 in the SEC data provided. Contrast frame: sales moved up hard, profit did not.
$300M
revenue
$0.26
eps
35.4%
gross margin
the number that mattered
Gross margin was 35.4%. Gross margin → money left after parts and labor tied to the job → so what: the problem is not selling work, it is what happens after the sale.
-
activist investor carl icahn has taken a liking to monro, inc.
-
indeed, according to a november regulatory filing with the securities & exchange commission, icahn enterprises — the octogenarian’s publicly traded investment vehicle—accumulated a 5,078,573–share stake in the new yorkbased auto-repair and tire chain.over an eight-day stretch beginning in early october, the billionaire’s proxy purchased more than 3.6 million of those shares at prices ranging from $14.28 to $17.48. icahn enterprises filed as a nonpassive 13d investor and indicated that it may advise monro’s leadership to explore strategic alternatives, including a possible sale of the company.
-
mr.icahn’s involvement follows a mid-2023 agreement that will ultimately eliminate monro’s dualclass share structure.
-
upon conversion of the special preferred shares, a single investor (peter j.solomon) will no longer have veto power over major company matters, thus opening up monro to greater shareholder activism.
-
boosting sales will likely remain a top priority, regardless of who ultimately controls monro.the permanent closure of 145 underperforming stores has ostensibly left the company with a healthier retail network.
source: company earnings report, 2026
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What could go wrong
the #1 risk is price competition in tires and repair while operating at a 1.8% net margin.
med
competitive pricing pressure
Tires, oil changes, brakes, and routine repairs are easy categories for consumers to shop on price. That is a bad place to be when your profit margin is already 1.8%.
A modest pricing miss can do outsized damage because there is very little margin buffer to absorb it.
med
store-closure execution
Monro closed 145 underperforming stores. If the remaining footprint does not produce better traffic and profitability, the reset becomes shrinkage, not improvement.
Closures only help if the surviving stores earn more. If they do not, the revenue base gets smaller without fixing the economics.
med
slowing comparable-store sales
Comparable-store sales growth slowed from 5.7% in the June quarter. For a business with fixed labor and occupancy costs, softer traffic quickly becomes a margin problem.
If comps keep decelerating, the turnaround narrative shifts from patience to doubt.
med
dividend pressure
A 5.8% dividend yield looks generous. It also means cash discipline matters more when the business is only keeping about 2 cents of each revenue dollar.
If operating results slip, investors lose both parts of the story: the turnaround and the income support.
100% of Monro's $883M revenue comes from one low-margin retail-service model, so even small pricing or traffic misses can hit earnings harder than the top line suggests.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next earnings on May 14, 2026
Watch whether the company can translate the recent EPS beat into guidance that holds up.
trend
comparable-store sales
This is the cleanest read on whether the remaining store base is getting healthier or just smaller.
metric
margin repair
Revenue grew 49.7% last year. The real test is whether profit can move meaningfully above a 1.8% net margin.
risk
activist follow-through
Icahn's 3.6M-share position matters only if it leads to measurable operating changes rather than headline volatility.
Analyst rankings
short-term outlook
below average
Momentum score 4 means the stock ranks below average on near-term performance expectations. In human-speak: analysts are not betting on a clean sprint from here.
risk profile
average
Stability score 3 puts MNRO around the middle of the pack for risk. Not especially safe. Not chaos either.
chart momentum
average
Technical score 3 says the chart is not sending a strong signal. The business will need to do the heavy lifting.
earnings predictability
30 / 100
A 30/100 predictability score means quarterly results can move around more than you would like. Translation: expect uneven execution.
source: institutional data
Institutional activity
90 buyers vs. 107 sellers in 3q2025. total institutional holdings: 38.2M shares.
source: institutional data
Price targets
3-5 year target range
$7
$26
$19
current price
$17
target midpoint · 13% from current · 3-5yr high: $60 (+210% · 36% ann'l return)
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